‘Let’s call it seed cash’: Donald Trump says Japan to invest $550 billion in US to lower tariffs — but deal still unclear

President Donald Trump claims that Japan has dedicated $550 billion for US investments beneath a brand new commerce framework, although the determine stays beneath negotiation and much from confirmed.“Japan is putting up $550 billion in order to lower their tariffs a little bit,” Trump stated on Thursday, additional including that, “They put up, as you could call it, seed money. Let’s call it seed money.”According to Trump, the US would obtain 90% of income from these investments, regardless of Japan offering the capital. He described it as a “signing bonus” linked to decreasing threatened tariffs from 25% to 15%, together with automotive sectors.A White House supply, instructed the Associated Press that phrases stay beneath dialogue with out formal documentation. They instructed the supposed $550 billion fund would make investments beneath Trump’s steering.This quantity is appreciable, representing over 10% of Japan’s GDP. The Japan External Trade Organisation experiences direct US investments reached $780 billion in 2023. The extent to which the $550 billion represents recent funding versus current plans stays unclear.The commerce framework introduced Tuesday has supplied the Trump administration with important dialogue factors.Trump states he has attracted trillions in new US investments, although financial indicators have not but mirrored these commitments in employment, building or manufacturing figures. The framework permits Trump to exhibit different nations accepting items taxation, though US customers might in the end bear some prices.Regarding the $550 billion, Japan’s Cabinet Office confirmed it entails state-affiliated monetary establishments’ credit score services, together with Japan Bank for International Cooperation. Additional particulars to be finalised as funding talks progress.Japanese commerce negotiator Ryosei Akazawa, shunned elaborating on the $550 billion funding particulars. “If we find differences of understanding, we may have to point them out and say that’s not what we discussed,'” Akazawa stated.Meanwhile, the US reportedly launched its model of the deal whereas Japanese officers had been still on their flight again.The US administration detailed that the funding would span throughout sectors together with important minerals, prescribed drugs, pc chips and shipbuilding. Additionally, they said Japan would buy 100 Boeing plane and US-grown rice inside this framework. Treasury Secretary Scott Bessent indicated quarterly evaluations would happen.“And if the president is unhappy, then they will boomerang back to the 25 per cent tariff rates, both on cars and the rest of their products. And I can tell you that I think at 25, especially in cars, the Japanese economy doesn’t work,” Bessent instructed Fox News.Akazawa denied Bessent’s assertion about quarterly evaluations being a part of the negotiations, saying that, “In my past eight trips to the United States during which I held talks with the president and the ministers. I have no recollection of discussing how we ensure the implementation of the latest agreement between Japan and the United States.”He expressed considerations about important financial and administrative disruptions if charges improve to 25 per cent on August 1 earlier than reducing to 15 per cent. He said, “We definitely want to avoid that and I believe that is the understanding shared by the US side.”Regarding US rice imports, Japanese officers maintained their place on the prevailing 770,000-ton “minimum access” restrict. Agricultural minister Shinjiro Koizumi clarified that Japan would independently decide any improve in US rice imports, with out dedication to a selected quota.Commerce secretary Howard Lutnick stated Japan’s deal might immediate different nations, like South Korea, to begin commerce talks with the US.Meanwhile, Trump, presently in Scotland, is predicted to meet European Commission President Ursula von der Leyen on Sunday to talk about commerce.